The hidden cost of owning an EV: Expensive insurance

Electric vehicles (EVs) have significantly higher insurance costs than gas-powered cars, with an average annual premium of $3,159 compared to $2,159 for internal combustion engine (ICE) vehicles. The insurance gap varies by state, reaching 73% in Rhode Island and $6,394 in Washington, D.C., while luxury brands like Tesla and Mercedes-Benz face the highest premiums. Higher repair costs and design differences in EVs contribute to the disparity.